#BreakoutTradingStrategy A breakout trading strategy is based on identifying moments when the price of an asset breaks key levels of support or resistance, usually accompanied by an increase in volume. These breakouts often mark the beginning of a new strong movement, either bullish or bearish.

The trader's goal is to position themselves right after the breakout to take advantage of the initial momentum. To increase reliability, many traders combine this strategy with tools such as moving averages, Bollinger bands, or volume analysis (OBV, VWAP).

For example, if the price of Bitcoin breaks a resistance at $70,000 with increasing volume, it could be a signal to enter for a bullish breakout. However, it is crucial to be aware of false breakouts (fakeouts), so a stop-loss is often placed just below (in upward breakouts) to limit losses.

Risk management is essential in this high volatility strategy.